EURUSD keeps saving strengths while expecting the news.
The major currency pair remains neutral on Wednesday afternoon. The current quote for the instrument is 1.1826.
Inflation in the USA is back to normal. According to yesterday’s statistics, the CPI showed 0.3% m/m in August after being 0.5% m/m in July and against the expected reading of 0.4% m/m. On YoY, the indicator showed 5.3% against 5.4% the month before.
The Core CPI added 0.1% m/m in August after expanding by 0.3% in the previous month.
The current inflation growth rate is the slowest over the last 6 months. Early in the year, inflation was high due to a surge in prices for new and second-hand cars. Now there are signs that this sector stopped skyrocketing. Hotel prices are also slowing down. That’s good news. In general, it matches what the US Fed says that the inflation boost was temporary.
At the same time, the labour market is slowly tightening, thus forcing salaries to grow. That’s another reason for inflation to rise.
The regulator is monitoring inflation and the new report might as well become a basis for more speculations and expectations of an early reduction of the Fed’s stimulus programs.
Later today, market players will be focused on the US Industrial Production report for August, which may show worse numbers if compared to July.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.